FYI: my march 2012 claims commission filing just had an appearance made by the AG's office ... that's only 6 mo...
If you wish to file a 42 USC 1983 case against the cop, I don't see it being won on the merits to be honest ('cause courts are biased).
So if you wish to file , file pro se IMO. To defend such a case will cost about $100,000 .. and it would cost you ~$400 ... assuming you get past a motion to dismiss & motion for summary judgment.
Use the old "monkey see/monkey do" method of writing up a complaint.
Once filed, discovery can begin ...
I've been in state courts, federal courts, appellate courts, you name it ... if I get pissed off with a government official, I file. ~$400 is all it takes (CT has a pro se bond which is crap -- you get your $$ back but you have to ask for it via a motion, which is always granted).
Another avenue I have done is to run for public office ... just to torpedo a candidate ... I have been very successful here. In your case, I think you would want to win a selectman's position to boot out the chief (he's the one who recommended hiring the goof)..
Federal v state court? Up to you.
They may settle the case ... so at least you recover some of the money you lost.